FAR will retain a 40% stake in each license, with Petronas funding 80% of the costs of the Samo-1 exploration well, due to be drilled later this year, up to a cap of $45 million.
In addition, the company will pay FAR $13.5 million to reimburse its back costs for the concessions.
FAR will remain operator through the exploration phase, with Petronas retaining the right to assume control for any field development that may follow.
Samo-1 will be the first exploration well offshore The Gambia since 1979. FAR estimates prospective oil resources of up to 825 MMbbl.
Completion of the farm-in remains subject to ministerial approval from the government of The Republic of the Gambia and other joint venture consents.
FAR managing director Cath Norman said: “Petronas brings world class technical and financial strength to our joint venture [and] also has significant deepwater development expertise in the event of a discovery.”